Adrad Holdings (ASX:AHL) Interest Coverage : 168.17 (As of Dec. 2023)

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What is Adrad Holdings Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Adrad Holdings's Operating Income for the six months ended in Dec. 2023 was A$5.0 Mil. Adrad Holdings's Interest Expense for the six months ended in Dec. 2023 was A$-0.0 Mil. Adrad Holdings's interest coverage for the quarter that ended in Dec. 2023 was 168.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Adrad Holdings's Interest Coverage or its related term are showing as below:

ASX:AHL' s Interest Coverage Range Over the Past 10 Years
Min: 6.28 Med: 6.28 Max: 64.33
Current: 64.33

ASX:AHL's Interest Coverage is ranked better than
76.43% of 2295 companies
in the Industrial Products industry
Industry Median: 13.7 vs ASX:AHL: 64.33

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Adrad Holdings Interest Coverage Historical Data

The historical data trend for Adrad Holdings's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Adrad Holdings Interest Coverage Chart

Adrad Holdings Annual Data

Trend

Jun23

Interest Coverage

6.28

Adrad Holdings Semi-Annual Data
	Dec21	Dec22	Jun23	Dec23
Interest Coverage	N/A	3.24	42.39	168.17

Competitive Comparison of Adrad Holdings's Interest Coverage

For the Specialty Industrial Machinery subindustry, Adrad Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Adrad Holdings's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Adrad Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Adrad Holdings's Interest Coverage falls into.

Adrad Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Adrad Holdings's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Adrad Holdings's Interest Expense was A$-1.8 Mil. Its Operating Income was A$11.5 Mil. And its Long-Term Debt & Capital Lease Obligation was A$43.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	11.483	/	-1.828
	=	6.28

Adrad Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Adrad Holdings's Interest Expense was A$-0.0 Mil. Its Operating Income was A$5.0 Mil. And its Long-Term Debt & Capital Lease Obligation was A$46.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5.045	/	-0.03
	=	168.17

The higher the ratio, the stronger the company's Financial Strength is.

Adrad Holdings (ASX:AHL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Adrad Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Adrad Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Adrad Holdings (ASX:AHL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Adrad Holdings Ltd (ASX:AHL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

26 Howards Road, Beverley, SA, AUS, 5009

Website

https://www.adradholdings.com.au

Adrad Holdings Ltd designs and manufactures a wide variety of original equipment and aftermarket heat exchange products for both mobile and stationary applications. The company operates in two segments which include Heat Transfer Solutions, and Automotive Aftermarket. Heat Transfer Solutions designs and manufactures industrial cooling solutions for use in road transport and heavy vehicles, mining, power generation, data centers, and rail industries. Automotive Aftermarket manufactures, imports, and distributes radiators, mobile and stationary heat exchange products, and a variety of automotive parts for the Australian and New Zealand automotive and industrial markets.